Schumacher v. City National Bank

18 Cal. App. 3d 146, 95 Cal. Rptr. 572, 1971 Cal. App. LEXIS 1369
CourtCalifornia Court of Appeal
DecidedJune 16, 1971
DocketCiv. No. 10657
StatusPublished
Cited by1 cases

This text of 18 Cal. App. 3d 146 (Schumacher v. City National Bank) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schumacher v. City National Bank, 18 Cal. App. 3d 146, 95 Cal. Rptr. 572, 1971 Cal. App. LEXIS 1369 (Cal. Ct. App. 1971).

Opinion

Opinion

WHELAN, J.

Evelyn L. Schumacher, as guardian of Laura Mary Schumacher and Suzanne L. Schumacher, minors, appeals from an order setting aside an order for payment of family support for said minors under Probate Code section 681.

M. John Schumacher (Schumacher), a practicing psychiatrist, and father of said minors, died April 24, 1969.

Evelyn L. Schumacher (Evelyn) is the former wife of Schumacher and the mother of the minors. On July 1, 1963, she and Schumacher executed a property settlement agreement by which he contracted to pay $200 per month for the support of each of the minors.

In the subsequent divorce decree the agreement was approved and the parties ordered to perform its terms.

[149]*149Laura Mary was bom on February 14, 1950, and Suzanne Lynne on April 20, 1951.

On July 3, 1969, Evelyn, on behalf of herself and the minors, filed a petition for a family allowance of $200 per month for each child alleging the contract provision and the divorce decree ordering compliance.

An ex parte order was filed on the same day (although dated July 2)‘ fixing an allowance of $200 per month for each child commencing as of May 1, 1969, and to continue until further order of the court.

On September 4, 1969, City National Bank, as executor of the last will of Schumacher, filed a petition for an order vacating the order of July 3, 1969. The hearing of that petition was set for September 26.

The basis of the petition to set aside the earlier order was the property settlement agreement under which, it was alleged, Schumacher agreed to maintain life insurance policies in favor of Evelyn and the children so that the proceeds should satisfy his post-mortem obligation for child support.

The allegations of the petition, if true, would have supported a finding that the insurance proceeds were intended by the parties as a fund to furnish child support after the father’s death.

The petition to set aside the order of July 3, 1969, was heard on January 6, 1970.

At the hearing the attorneys who had represented the respective parties in negotiating the property settlement agreement testified to conversations at which both husband and wife were present, at which was discussed the husband’s concern that the support of the children should not be a burden upon his estate; his prospective insurance resources were balanced against the future liability for support based upon the then ages of the children, including a third child no longer dependent.

Schumacher’s attorney testified to those matters in detail and was corroborated by Evelyn’s attorney. Evelyn herself had only a hazy recollection of the negotiations leading up to the execution of the agreement.

The agreement listed the policies by name and amount. Schumacher agreed to maintain them, except as to two policies on which he was to apply only the cash reserve on account of premiums. Evelyn and the [150]*150children were to be beneficiaries. Of the policies on which Schumacher agreed to pay all premiums, there had been paid to Evelyn a total of $52,000, of which she and the three children were equal beneficiaries.

The property settlement agreement had included the following: “Husband hereby agrees to maintain policies lettered A through E as listed above, in full force and effect, and to maintain the Wife and the minor children of the parties as irrevocable equal beneficiaries thereunder for as long as they or any of them are entitled to receive support from Husband, and no further beneficiaries shall be added so long as Wife or any of the minor children are entitled to receive support from Husband, subject only to a change of beneficiary in the form of a trust. Said trust, among other things, shall provide in substance that payments are to be made in the amounts and in the manner provided in the court order existing at the time of death. Husband shall pay all premiums as and when due ...”

On April 15, 1970, an order was filed setting aside the order of July 3, 1969, nunc pro tunc as of that date. The order allowed and ordered payment out of the estate of fees for Evelyn’s attorneys.1

Evelyn’s contentions on appeal are that an agreement between the parents may not defeat the right of minor children to receive a family allowance for support under the Probate Code; and that the existence of insurance funds whose income would be insufficient to support the children may not deprive them of the right to a family support allowance because Probate Code section 682 does not provide for such denial of family support.

A specific ruling of our upper courts on the subject as applied to the right of children to a family allowance has not been cited or found.

Estate of Jameson, 224 Cal.App.2d 517 [36 Cal.Rptr. 802], held it was an abuse of discretion to deny an allowance to a minor child on the theory he had “a reasonable maintenance derived from other property” under Probate Code section 682, when all that he had were social security payments. The court reasoned an obligation to pay support under a divorce decree was not met by social security payments which were involuntary so far as the deceased father was concerned. As to the remedy of an action on a creditor’s claim it was considered such a proceeding [151]*151would not supply immediate current need. (See also Estate of Goulart, 218 Cal.App.2d 260 [32 Cal.Rptr. 229, 6 A.L.R.3d 1380].)

In Estate of Barkdull, 275 Cal.App.2d 729 [80 Cal.Rptr. 317], an order for support of two minor children was affirmed although their mother was receiving social security for the children and as their guardian had received over $15,000 in proceeds from insurance on the father’s life. No contention was made that there was an agreement the insurance was to furnish support or as to ownership of the policy. The appellant was relying upon Probate Code section 682, which is as follows: “If the widow, widower, or any minor child has a reasonable maintenance derived from other property, and there are other persons entitled to a family allowance, the allowance shall be granted only to those who have not such maintenance.”

In the case of a spouse, he or she may by contract, where the language is appropriate for the purpose, waive effectively for himself or herself the right to a family allowance during administration. (Estate of Zlaket, 180 Cal.App.2d 553 [4 Cal.Rptr. 450].)

Where there has been no extrinsic evidence as to the meaning of the contract and the construction of the trial court was based solely upon the terms of the contract, the reviewing court is not bound by the interpretation of the trial court. (Estate of Wiedemann, 228 Cal.App.2d 362, 367 [39 Cal.Rptr. 496, 9 A.L.R.3d 944].)

In Estate of Wiedemann, supra, 228 Cal.App.2d 362, 367-368, the court stated: “Family allowances are strongly favored in the law. [Citations.] While, as pointed out above, they may be waived by contract [citation] whether the right has been thus surrendered in a particular case is a question of the interpretation of the contract involved.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Estate of Schumacher
18 Cal. App. 3d 146 (California Court of Appeal, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
18 Cal. App. 3d 146, 95 Cal. Rptr. 572, 1971 Cal. App. LEXIS 1369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schumacher-v-city-national-bank-calctapp-1971.